Corn futures on the Chicago Board of Trade closed lower on Wednesday, pressured by a private crop estimate that pegged this year's US corn crop above the government's August forecast, traders said.
September corn was down 2-1/2 cents at $2.26-1/4 per bushel and new-crop December was down 3-1/2 at $2.40-3/4. Analytical firm Informa Economics estimated the 2006 US corn crop at 11.068 billion bushels, reflecting an average yield of 153.5 bushels per acre, traders said.
That was above the US Agriculture Department's August forecast for 10.976 billion bushels, with an average yield of 152.2 bpa. Many traders had expected USDA to trim its crop estimate in its September 12 report. Also bearish was USDA late on Tuesday raising its rating of the US corn crop, putting 59 percent in the good to excellent category, up from 57 percent a week ago. There had been expectations for conditions to be unchanged.
Rain was expected to move through the Midwest starting later this week, which could stall early harvest, Meteorlogix weather service said on Wednesday. Deliveries on the September contract were heavy at 2,712 lots and there was scattered stopping.
Spot basis bids for corn in the Midwest early Wednesday were steady to soft amid light scattered sales, dealers said. CBOT oat futures closed flat to lower, with September unchanged at $1.88 per bushel. December was down 2-1/4 at $1.93-1/2.
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